Drainage utility tax opponents face potential roadblock

People circulating petitions to abolish the drainage utility and its fees and also cap city spending are regrouping to discuss what could turn out to be a roadblock.

“We’re meeting on it early next week to decide what we want to do,” said Bill Sumerford, a leader of the push. “Do citizens have a voice in local government? — that’s the issue. If we can’t get the issue to the ballot box, we don’t have a ‘we the people’ form of government. The city budget is growing at a rate that’s more than the rest of the city’s economic growth rate will support.”

The problem with the petitions involve the Texas Constitution and the city of Amarillo Charter.

“The city has written a letter to Mr. Sumerford being very candid, saying we think there are legal problems,” said City Attorney Marcus Norris. “Over the last decade or so, there have been various initiative petitions presented to the city, and when the prerequisites have been met, the city has ordered elections. These two petitions, however, are in a different category — they get into fiscal management of the city.”

Specifically, the drainage utility has contractual obligations it must meet.

“We issued debt for those initial projects. The city has covenants with the holders of that debt that we pledged those drainage fees to repay that debt,” Norris said. “It would be an unlawful act for the city to dissolve that utility.”

City commissioners established the utility in April after multiple public meetings over about four months to explain the proposal and take public comment. Residents didn’t say much, but the comments made were mixed. Commissioners issued about $6.9 million in debt in November at an interest rate of 1.7 percent for 20 years.

State law requires that money only be spent on drainage, unlike the general fund that is used for a broad range of projects including, in the past, drainage.

It would take a property tax increase of almost 5 cents per $100 of taxable property value to replace the $4.3 million the fee is expected to raise annually, according to calculations by Assistant City Manager Dean Frigo. When writing the 2012-13 budget, about $1 million formerly allotted for drainage activities in the general fund was transferred to the drainage utility fund.

Sumerford would rather rely on cutting the existing budget.

“There are lots of things the city can re-prioritize to take care of drainage issues without an additional fee,” he said. “What we’ve seen is the city has spent lots of money on golf courses, city parks and splash pad — feel-good projects.”

As for capping overall city spending with a formula based on population growth and inflation, Norris sees other legal issues.

“When you talk about how to adopt a city budget, state law requires publishing notices and votes taken,” he said. “It does not involve an election or formula.”

There are also practical issues.

“His formula for capping the budget may be attractive to some people because it’s simple, but it’s inadequate. There are unfunded mandates from state and federal government, citizens demanding new services but no budget cuts and growth and annexation that don’t fit neatly in a formula,” Norris said.

The numerous petitions asking the city to do something — there are four pending — may stem from broader concerns as well.

“That number is unusual,” said Terrell Blodgett, professor emeritus of urban management at the University of Texas’ LBJ School of Public Affairs. “Usually you wouldn’t see over one or two at the most for a city your size. Even in larger cities. But cities are in a bind to provide services citizens demand so they’re trying any creative ways they can.”

Blodgett also credited the general antagonism toward government of people sympathetic to tea party attitudes.

There also may be economic pressures at work.

“With the economy the way it is, people are more dissatisfied with government,” said Dave Rausch, a political science professor at West Texas A&M University. “There’s pent-up disgust with government. They think that by voting for this, ‘I’m taking back government,’ but they’re not. They’re putting it on autopilot.”

Initiatives and referendums are ways for citizens to have direct participation in what is typically a representative form of government.

“On one hand we want an active citizenry,” said Ann Bowman, a political science professor in the Texas A&M University Bush School of Government and Public Service. “On the other hand, it shifts the focus of the council to something else. It’s a distraction.”